Jan. 14 (Bloomberg) -- Prokon Regenerative Energien GmbH, a
German clean-power developer, collected 1.4 billion euros ($1.9
billion) from investors seeking to profit from the booming wind
industry. It may now have to file for protection from creditors.

Prokon will be forced to file for insolvency this month if
it doesn’t get agreement from almost all investors to delay
withdrawals from profit-participation certificates, it said in a
statement. The company has sold certificates to more than 75,000
investors, promising returns of 6 percent.

The developer, which owns 314 wind turbines and employs
about 1,300 people, has relied on the certificates to attract
funding. Fears of a possible bankruptcy can prompt holders of
such rights to cancel their commitment, forcing the company to
pay out according to the terms of the participation agreement.
Such loans are less regulated than the official stock market.

Consumer protection is of “great importance,” especially
in the “gray capital market,” German Justice Minister Heiko
Maas said today, referring to unofficial trading practices.
“The state must provide protection and precaution where
consumers can’t protect themselves,” Maas said in a statement.

Prokon, based in Itzehoe in the northern state of
Schleswig-Holstein, said that while it’s economically healthy
and its wind farms are profitable, “panic” withdrawals are
forcing it to repay money it doesn’t have. The developer has
asked investors to delay withdrawals through October, and needs
agreement from 95 percent by Jan. 20, its Jan. 10 filing shows.

Losing Money

“Don’t allow a planned insolvency to happen,” the company
told investors, saying it lost money last year after paying out
interest at an average of 8 percent. “Don’t let locusts and
energy companies pinch a model company in the capital market
with a unique, fair philosophy for little money.”

As funding concerns mount, Prokon also faces a probe in
Schleswig-Holstein. Prosecutors in the city of Luebeck received
two complaints against Prokon and have opened an investigation
into “initial suspicion of fraud and other economic crimes,”
Wenke Haker-Alm, a spokeswoman for the prosecutors, said today.

Calls to Prokon went unanswered. The company didn’t reply
to a request for comment sent by e-mail.